Intel works with GE on healthcare

General Electric and chip maker Intel have joined forces to develop hi-tech health care products that will allow patients to be treated at home.

The two firms plan to invest $250m in the project over the next five years.

Intel is best known as the world's largest chip maker but it has been working hard over the past few years to grow a new business in health care.

GE already has a sizable business selling health care products to hospitals and insurance companies.

Neither company has been immune to the effects of the global economic downturn but they were confident that this could become a multi billion dollar business.

At the launch event in New York, Jeff Immelt, GE's chief executive told the BBC he had high hopes for the project.

"Neither Intel nor GE does anything to create small businesses," Mr Immelt said.

"We do things to create big businesses."

Cutting costs

The Intel Health Guide, a special computer which allows doctors to remotely monitor, diagnose and consult with patients at home.

The technology could save hundreds of people from making repeated trips into hospital and could lower costs

"Something like 80% of the spending today in the health care system is on chronic care patients," Paul Otellini, Intel's chief executive said.

"This has the potential to take that down dramatically because a day at home costs a heck of a lot less than a day in the hospital."

As populations age in the US and in other countries, the two companies believe the market for using this kind of technology to manage chronic diseases could grow from $3bn a year to $7.7bn by 2012.

In the UK, the National Health Service in West Lothian is already piloting Intel's Personal Health System.

The deal comes as the Obama administration in the US has made improving the efficiency and lowering the cost of health care a major priority.

To achieve this, companies will have to play their part.

"I think business has an obligation when they have technology and new ideas and new market opportunities to step up," said Mr Otellini.

"Government also has an obligation - sometimes as the payer or the regulator - to be aware of what technology can do," he added.